if my fixed salary is 1800000, variable salary is 100000 and i get increment of 20% how much will be my fixed and variable pay post increment how does the increment affect the variable component

@Albus if my fixed salary is 1800000, variable salary is 100000 and i get increment of 20% how much will be my fixed and variable pay post increment how does the increment affect the variable component

The increment of 20% will be applied to both your fixed and variable salary unless specified otherwise by your employer. So, if your fixed salary is 1,800,000 and you get a 20% increment, your new fixed salary will be 1,800,000 + (1,800,000 * 20/100) = 2,160,000. Similarly, if your variable salary is 100,000 and you get a 20% increment, your new variable salary will be 100,000 + (100,000 * 20/100) = 120,000. Therefore, post increment, your fixed salary will be 2,160,000 and your variable salary will be 120,000.

The variable is dependent on the clause of your contract with the employer. At one employer, i had variable of upto 25% of my gross salary, while at other, it was upto 3.50 lakhs. In the first case with increment fixed and variable both see an impact, in latter only the fixed has the impact.

so the increment of 20% is applied to both fixed and variable components separately in the case where the variable% are fixed

If I understand correctly, you're asking about a situation where there are fixed components and variable components, and a 20% increment is applied separately to each of them. If the variable components are fixed, it means they remain unchanged regardless of any adjustments or increments. In this case, if a 20% increment is applied separately to both the fixed and variable components, only the fixed components will be affected.

@Isha Goyal general practice the hike is on the overall CTC(fixed +variable) unless the variable is fixed irrespective to change in fixed. So the 20% hike would be on 19 lakhs overall, find the % of variable on CTC and distribute 20% hike to Fixed and Variable later

At the end, it all depends of the employment contract terms. 🙂

thank you @Aishwarya Pandey @Rashmi Utnal @Wristy @[TSOW] Nisha Kumari got some clarity, i shall proceed with overall hike on complete ctc and then on the new revised ctc i shall bifurcate them as fixed and variable depending on the %of variable decided for the grades this FY